Business or company management is very hard work, and there is no doubt about it. Many employees in different firms think that managers only get money and take credit while they do the main works. This situation is even worse in the case of small companies. So, the problematic issue here is about the effective management of work.
So, most of the IT companies offer a service called outsourcing which is quite beneficial and at the same time risky for different organizations. Many of the firms get succeeded by cutting costs related to business functions related to the IT departments, accounting departments, marketing, and HRM department, etc.
You can also run a company on your own with the managed IT outsourcing option without the selection and recruitment of a single employee.
However, the 3R factor is always linked with IT outsourcing, and it represents three aspects of this style of IT service. – Reasons, Rewards, Risks.
Reasons for IT Outsourcing
- With outsourcing, you can eliminate certain aspects from the equation, such as- the cost of hiring employees, training them, health insurance, management oversight, retirement plans of the employees, and employment taxes.
- You can mainly focus on the core competencies of the company which is quite practical in this competitive world.
- ROI in the case of IT outsourcing is unbelievably more as you, in this case, will be in the great hands of an experienced company. You can also get benefited from the collective experience of many IT professionals.
- The outsourced IT firms have sufficient human resource, impressive industrial training as well as certifications.
- While maximizing the cost improvement, quality improvement, product and service development, as a whole restricting the company, outsourcing the best option.
Rewards associated with IT Outsourcing
- With this approach, many organizations get multiple resources. While there is a chance that the internal employees can limit the resources as well as capabilities, there is no such risk associated with the outsourcing service of an IT company.
- You don’t have to encourage the employees to get up-to-date with the new technologies, software, and hardware by choosing the outsourcing services.
- There are many financial benefits associated with this service as you can rely on bulk purchasing, the option of leasing software and hardware, etc.
- The outsourcing companies have well-experienced and capable employees who can help you with your issues of IT, and you don’t have to give job security to the employees.
Risks of this IT service
- There are several IT functions that can’t be outsourced easily due to complex automated factors.
- There is severe risk involved with the confidentiality of the information in the case of outsourcing Information Technology services.
- Disaster recovery is another risk associated with it.
- Control might be out of your hand with the approach of IT outsourcing.
- Many of the famous outsourcing companies require a signed contract of one year or two years in the case of which you may limit the factor of flexibility and get yourself locked in.